Non-resident Indians (NRIs) are those who have an Indian passport but live outside India for more than 182 days in a financial year. NRIs have to pay tax on their income earned or received in India, as well as on their income that is deemed to accrue or arise in India. However, NRIs can also claim certain exemptions and deductions to reduce their tax liability.

In this post of GrowWise, we will explain how to file income tax returns for NRI in India. We will also cover the eligibility, due date, forms and documents required for filing income tax returns for NRI.

Eligibility for filing income tax returns for NRI

An NRI is required to file an income tax return in India if any of the following conditions are met:

  • The NRI’s total income in India during the financial year exceeds the basic exemption limit of Rs 2.5 lakh.
  • The NRI has a refund claim from the income tax department.
  • The NRI has any assets or financial interest in India, such as property, bank accounts, shares, mutual funds, etc.
  • The NRI is a signing authority of any account located in India.
  • The NRI has to report any foreign assets or income under the Black Money Act.

Due date for filing income tax returns for NRI

The due date for filing income tax returns for NRI is the same as that for resident Indians, i.e., 31st July of the assessment year. However, if the NRI has any business or professional income that requires an audit, then the due date is extended to 30th September of the assessment year.

For example, if an NRI has income in India for the financial year 2023-24, then the due date for filing income tax returns is 31st July 2024. However, if the NRI has business or professional income that requires an audit, then the due date is 30th September 2024.

Forms for filing income tax returns for NRI

The forms for filing income tax returns for NRI depend on the type and source of income earned by the NRI in India. The following table summarizes the forms applicable for different categories of income:

Income Category Form
Salary, house property, other sources and capital gains ITR-2
Business or profession ITR-3
Presumptive income from business or profession ITR-4

(Source: Income Tax Department1)

Documents required for filing income tax returns for NRI

The documents required for filing income tax returns for NRI are similar to those required for resident Indians. The following are some of the common documents that an NRI should keep handy while filing income tax returns:

  • PAN card
  • Aadhaar card (optional)
  • Bank statements
  • Form 16 (if salaried)
  • Form 16A/16B/16C (if any TDS deducted)
  • Form 26AS (tax credit statement)
  • Proof of investments and deductions
  • Proof of foreign assets and income (if any)

Steps for filing income tax returns for NRI

Here are the steps for filing income tax returns for NRI online:

  1. Visit the e-filing portal of the Income Tax Department at https://www.incometax.gov.in/iec/foportal/
  2. Register yourself with your PAN and other details
  3. Login to your account and select the relevant assessment year and form
  4. Fill in the required details such as personal information, income details, deductions, taxes paid and verification
  5. Upload the scanned copies of the documents if required
  6. Submit your return and e-verify it using Aadhaar OTP, net banking or EVC
  7. Download the acknowledgement receipt and keep it for future reference

(Source: Axis Bank2)

Conclusion

Filing income tax returns for NRI is not a difficult task if you follow the above steps and have all the documents ready. Filing income tax returns can help you claim refunds, report your assets and comply with the law. However, you should also be aware of the tax treaties between India and your country of residence to avoid double taxation and claim relief.

Please note:

  • GrowWiseis not registered with the Securities and Exchange Board of India (SEBI) as an investment advisor, research analyst, or portfolio manager.
  • The information published on this blog is presented for educational purposes only and should not be construed as financial advice.
  • We strongly recommend that you seek the advice of a qualified financial advisor before making any investment decisions.